BRL Hardy Write-up
What recommendation would you make to the organization concerning the conflicting proposals for Kelly's Revenge and Banrock Station? What would you do as Carson? As Millar?
Making a recommendation to BRL Hardy concerning the conflicting proposals for Kelly’s Revenge and Banrock Station is complicated. On one hand we have a parent company – and its top management – that aspires to become an “international wine company”, leveraging existing marketing capabilities and distribution muscles. On the other hand, however, the same top management established, following the merge, a new company’s culture and management style based on decentralization to better tailor products’ value proposition to local market needs and on accountability of the local management. Kelly’s Revenge is the proposal fully developed by Carson and in particular by his UK team led by the newly appointed Paul Browne in response of the opportunity for a Hardy’s brand positioned at the £3.99 price point. Banrock Station instead is a comparable product in terms of price point, developed exclusively by the parent company, and already successfully distributed in Australia, New Zealand, and in the United States. Based on the strong sales performance not only in Australia but in other two foreign markets, coupled with the aforementioned company strategy to become a “global brand”, my recommendation would be to promote Banrock Station also in UK. However, given the arguments made by the UK management regarding the limited appeal of the label design and of the environmental positioning in light of the peculiarities of the UK market, I would first take Bankrock Station to some important accounts (e.g., UK grocery chain ASDA) to tests their reaction to the new product, as it was done for Kelly’s Revenge, and only then decide if it is worth proceeding or not, thus limiting the financial investment. Christopher Carson, managing director of BRL Hardy Europe, has at this point to...
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